The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-04-28
THE OUTRAGEOUS TAX ON CON.
PANIES DEALING IN
Coal Oil and Other Illuminating
Fluids-H0w Did II
Pass
ATTORNEY GENERAL PICKLE
SAYS TaE INTENT Is CLEAR.
Representatives Responsible for
Criminal Neglect Of Their
Constituents.


gone up against the last Legislature
for Posing the act taxing coal oil and
Illuminating oil companies. The
measure was pushed through so quiet
I ly and hurTiedly that the oil dealers
and public generally knew nothing Of
its existence until few days ago. The
law reads thus:
"Coal oil ard Illuminating oil com
panies-compsnies, persons, agencies
or firms, selling, or otherwise, manu-
featured in this State, or elsewhere, in
counties including cities, taxing dis
tricts, or towns OF 10000 inhabitants
or over, each per annum tax ID $1,000.
In the fame from 10000 20 10000,
$500; fIom 10000 to 10000, 5000; from
5OO0 to 10000, 500; from 1000 to 5000,
$50; less than 1000, inhabitants, moth
ing.
Provided that this clause shat not apply
to merchant, etc., and retail dealers selling
to consumers only; and provided further,
firms, corporations or their representatives,
now engaged in the manufacture OF oils,
Rreases or lubricants, or local manufactur-
ing enterprises in this State.
A consultation OF interested psrtles
at Nashville was held on the 10th in
slant 1t was the general belief that
REQUIREMENT be had 10 the Supreme
Court at once, or these merchants
must give up dealing in this article
and sse this feature Of their trade 90
to NJ Ugh boring cities. 1t was thought
a test case should be institute to test
the case and pro rate the expense
thereof among dealers IN coal oil
Comptroller Picard wrote Attorney
General 6. W. Pickle for his opinion
upon the Interpretation of the provi-
sions OF the bill. he replied in full,
taking up the revenue act by sectionp,
stating at the beginning that the set
is Obscure and difficult OF construc.
ton, bat it is clear. The opinion is as
follows:
That the first clause embraces all per
sons, firms, agents, etc., selling coal or illu-
minating oils in any manner, whether such
oils are IN nufactured in this State or not.
2. 1t is equally clear that certain modifios-
ti0ns of this frst clause are made by the pro-
visions Immediately succeeding. These
notifications to the general clause are in
some respects very clear.
(a) There is no tax on the seller of these
oils in counties containing cities, towns or
taxing districts of less than l0v0 IN habitants.
Meaning of not more than 1000 nhabitants,)
(bl There 10 no tax on merchants and
retail dealers setting to con ..umers only, no
matter where they may sell. Such dealers
do, however, pay q merchants tax.
The object of these exceptions seems to
have been to permit the sales of these oils in
small towns and in counties, where only
consumers usually buy 1t, aud in all places
to consumers upon payment by seller of a
merchant X only. Thus far the meaning
OF the act seems plain.
v The rS S Sy iFs s wGa the 'feS 6sp prot
apply to manufacturing fir as, corporations
or their representatives now engaged in the
m nufacture Of oils, g eases and lubricants,
Q. local manufacturing enterprises in this
This proviso is double. 1t seems pretty
clear that the last clause exempts from taxa
ton "local manufacturing enterprises" Of
oils of any kind that may sell their products,
Local. here means within this State-not
foreign. Bet he first clause Of this second
TO be taken in the broad, liberal sense Of its
language, it's repugnant to the provision
imposing this tax, and annuls or Is annulled
by that provision. 1t is our duty, however,
with ths rest of the act. The office " a pro-
viso, generally, is either to except sonnet thing
from the enacting clause, to restrain its gen.
erality, or to exclude some possible ground
of misinterpretation Of il as extending to
cases not intended by the legislation to be
brought within purview. Potter on Statutes,
page lis.
Again. a proviso in a statute is to be strict
ly construed. II takes no case out of the en-
acting clause which is not fairly with the
terms of the proviso. Ibid p. lis, No. II.
Continuin2 this proyiso in accord Ince with
the principles and in accordance with the
IN iniiest purpose Of the Legislature, hold
that IL foes not apply 10 coal or illuminat-
ing oils" at all, but was inserted (unneces-
sarily it is truel to prevent tho application
such oils as are used for lubrcating, greas-
ing, painting, etc and not for purposes of
illu i nation. twill be observed, oils are
used without descriptive word in the pro-
"greases and lubricants" indicating that it
is used in q sense Kindred to the
later words. To construe this provide
otherwise would anLul either 1t
or the entire act on this subject. probably
the latter. 1t cannot be tnat it was intend
to go free of taxation, or they would not
have been mentioned.
You will therefore collect this tax of all
persons, etc., selling coal or Illuminating
oils" EXCEPT in counties having nc, town Of
1000 inhabitants or tbereabouts and sell to
consDmers only, or when manufacturer Of
ihi, State sells his own products. Respect
fully, G. W. PICKLE.
An APPEAL representative yester-
day sought out the oil dealers Of this
city and obtained their viz WIS as to the
effect of The act. They were unsni.
nous in pronou nciug it one Of the
most vil,ainous and oppressive ever
passed in Tennessee. Mr.. Harry E.
Ooffin, of ]. H. Coffin & Co., spoke
very freely on the subject. He said,
In substance:
ut can only bring about the result
Of throttling that business in Mem
phis, 30 far as the local dealers are
concerned, and est sblish the Standard
Oil monopoly, in VIII 50 interest it was
evidently parsed. We are already
paying a tax Of 25 cents per barrel, no
matter whe it is cold. No otter
State in the Union imposes this, ex-
cept where the oil is shipped, end
then it ia only 5 or 10 cents per barrel.
Shipments from Cincinnati, Cleveland
and other cities ere taxed So per car,
for inspection, while ours amounts to
SIG. While we have always regarded
this as uDjutt and oppr, ssive, ther1
wa1no disp position to complain. But this
$1,000 il fl ction is altogether separate
and additional. II they bad only
added 10 or 10 cents per barrel to the
tax, it would not have been such q
high handed outrage, for then the ex-
pense would have been governed by
the I'm 9unt cold. AS it is, the dealers
who sell only $50 barrels year are
taxed just the same as those who sell
10000. None Of Us can stand that"
''In what particular way does 1t
operate in direct sympathy with the
Standard 2"
"Just this: That monopoly can es-
tablish headquarters for this territory
at Cairo, or any favorable shipping
point outside OF Tennessee. The lax
will not reach them. II they have an
agency there they can close it up and
fill the orders from district headqusr.
tiers. They already have agencies in
nearly II not all Southern cities, and
through them they can control the
business IN this State"
"If allowed to stand, to what extent
will it affect the business in Men,